International / global marketing
INTERNATIONAL MARKETING
finding out what customers want around the
world and the satisfying these wants better than
other competitors.(marketing in a foreign
country).
Global marketing :- is process of focusing the
resource (people , money, and assets) and
objectives , of an organization on global market
Opportunities and threat.
PROBLEMS IN INTERNATIONAL BUSINESS
1. political differences:- difference in political
and other frameworks.
2. cultural differences:- culture changes
[Link] differences:- economic
environment differ from one country to another.
[Link] in currency unit:- differ from one
country to another , currency convertibility.
[Link] differences:- differs in speaking
language communication problem.
[Link] in marketing infrastructure:-
availability and nature of infrastructure in
markets.
[Link] and investment restrictions:-
8. HIGH COST OF DISTANCES.
WHY TO GO INTERNATIONAL
THERE ARE TWO FACTORS
1. PULL FACTORS:- PROACTIVE
REASONS , FORCES OF
ATTRACTION THAT PULL THE
BUSINESS TO THE FOREIGN
MARKET.
2. PUSH FACTORS:- COMPULSION OF
DOMESTIC MARKET SUCH AS
SATURATION OF THE MARKET.
WHICH MAKES COMPANIES TO GO
INTERNATIONAL.
WHAT MADE GLOBAL MARKETING MORE RELEVANT THAN
INTERNATIONAL MARKETING
The emergence of borderless
business worlds or global market
makes the term global marketing
more important than
international marketing.
REASONS TO GO GLOBAL
1. PROFIT ADVANTAGE:- REDUCE IN COST OF
PRODUCTION.
[Link] OPPORTUNITIES:- RANBAXY INDIA
3. DOMESTIC MARKET CONSTRAINTS:- HMT
EXAMPLE WHEN RECESSION IN INDIA THEY
TAKEN EXPORT VERY SERIOUSLY.
4. COMPETITION
5. GOVERNMENT POLICIES AND
REGULATIONS
6. STRATEGIC VISION:- SYSTEMATIC
GROWING A PART OF POLICY BY
COMPANIES.
7. SPIN OFF OF INTERNATIONAL
BUSINESS:- HELPS TO IMPROVE THE
IMAGE OF COMPANY.
EXAMPLE WHEN PEOPLE SEE THAT
COMPANIES PRODUCT ARE SOLD TO
OTHER COUNTRIES THEY INCLINED TO
BUY.
DRIVERS OF GLOBALIZATION
[Link]:- 1980 is the most universal policy
liberalization, changes in china from communist.
[Link]:- increase in MNCs. MNCs leverage their strength
link global resources.
[Link]:- MOST IMPORTANT FACILITATING
FACTOR OF GLOBALIZATION
EXAMPLE:- A DOCTOR CAN SEND SCANS AND
REPORTS FROM US LABS TO INDIAN
BANGLORE LABS TECHNOLOGY LIKE
INTERNET HAS FINISHED DISTANCES.
4. Transportation and communication
revolution:- world wide web solves every
distance now.
5. Product development costs and efforts:-
cost of product development in certain areas
are high EXAMPLE :- medicine DUE TO
HIGH COST , CROSS BORDER ALLIANCE
IS REQUIRED.
6. QUALITY AND COST:- BETTER
ACHIEVE WHEN COMPANY IS GLOBAL.
7. COMPETITION:- HEIGHETNED
COMPETITION COMPEL
ORGANIZATIONS TO INCREASE THEIR
EFFICIENCY BY GOING GLOBAL.
LEVERAGES
MOST IMPORTANT FACTOR OF GLOBALIZATION IS
LEVERAGE , THAT MEANS MORE NUMBER OF
COUNTRIES A COMPANY WILL OPERATE IN A SECTOR
MORE WILL GET MORE LEVERAGE.
FOUR TYPES OF LEVERAGE:-
1:- EXPERIENCE TRANSFER:- GLOBAL
CORPORATION CAN EXPAND ITS EXPERIENCE BY
EXPANDING GLOBAL OPERATIONS EXAMPLE :-
COCACOLA DECIDED TO EXPAND INDIAN BUSINESS
MODEL OF TEA AND COFFEE TO OTHER COUNTRIES
FOR EXPANSION.
COST IS THE
[Link] ECONOMIES:-
MOST IMPORTANT FACTOR OF
SUCCESS IN BUSINESS. SO
REALISE SCALE OF ECONOMIES
IT IS OFTEN REALISE SCALE OF
ECONOMIES.
3:- RESOURCE UTILIZATION:- GETTING
RESOURCES GLOBALLY AND USING IT.
4:- GLOBAL STRATEGY :- GLOBAL
INFORMATION LEADS TO GLOBAL
STRATEGIC PLANNING BY SCANNING
THE BUSINESS ENVIRONMENT AND
KEY OPPORTUNITIES , SO IT IS A
DESIGN FOR WINNING IN GLOBE.
RESTRAINING FACTORS
Factors hampering the globalization
1:- External Factor:- that are government policies
and control which stops cross border business.
2:- internal factor:- factors with in the
organization one such factor is organizational
culture.
INTERNATIONAL BUSINESS DECISION
it involves series of strategic decisions.
First decision is whether they will go for international business or not.
If they decided to go international they have to make these decisions:-
1:- Market selection decision:- appropriate market.
2:- entry and operating decisions:- mode of entry.
3:- marketing mix decision:- product, price, place and promotion
decisions.
4:- international organization decision:- company goes for exporting so
they have to decide organizational structure that supports exporting.
INTERNATIONAL ORIENTATION
Analysis is provided by wind, Douglas
With in the framework of modified EPRG scheme.
FOUR TYPES OF ATTITUDE OR ORIENTATIONS
1. Ethnocentric orientation:- overseas operations are
secondary to domestic operations and primarily as a
means of disposing of surplus domestic production.
top management views domestic technique and
personnel as superior to foreign so these companies
neglect opportunities outside the home country
2. POLYCENTRIC ORIENTATION
A multi national orientation.
Multinational corporations are polycentric companies.
Merit is adaptation of business strategies to the local
conditions.
Policy is that local personnel and techniques are best
suited to deal with local market conditions. Main
focus point is to take care of local custom ,
culture and government policies.
[Link] ORIENTATION
Sees different regions as different market.
A particular region with certain important
common characteristics is regarded as a single
market.
Objectives are set by negotiations between
headquarters and regional headquarters.
Product policy tends to be implemented at
regional level.
4. GEO CENTRIC ORIENTATION
Views entire world as single market and develops
standardized marketing mix, projecting a uniform
image of the company and its products or the
global market.
It is usually characterized by sufficiently
distinctive national market.
TYPES OF INTERNATIONAL BUSINESS
1:- Trading :- import and export of
services.
2:- Manufacturing and marketing:-
manufacturer exporters are those who
export goods manufactured by them.
Example MNCs use to do marketing and
manufacturing .
3:- sourcing and marketing:- companies which
outsource the products which they market at
home or abroad.
4:- global sourcing for production:-
Firms which source globally their raw material,
intermediaries etc. required for manufacturing.